Wednesday, August 25, 2010

New Secrecy Battle: China Bars Banks, Other Companies From Using Foreign Security Technology

An AP newswire article by Joe McDonald, via Canadian Business Online, reports:

China has ordered its banks and other major companies to limit use of foreign computer security technology, setting up a possible trade clash with the United States and Europe while adding to strains over high-tech secrecy as some nations threaten to curtail BlackBerry service.

Beijing's restrictions cite security concerns but are also consistent with its efforts to build up Chinese technology industries by shielding them from competition and pressing global rivals to hand over know-how.

The United States and the European Union have raised questions in the World Trade Organization about the rules. An American industry group is criticizing them as an attempt to shut competitors out of a promising market. Authorities are inspecting companies to enforce the restrictions and some have been told to replace foreign technology.

"These are legitimate security concerns, but the Chinese are going way too far," said Steven Kho, a trade lawyer for law firm Akin Gump in Washington. "You cannot say from the outset, `All foreign products are a security risk.'"